Crypto exchanges have to learn and improve on their security

[Helena Yu]

As you mentioned, even binance is no exception. But I highly believe, they have very good security system to counter attack possible threats.

Nope, Binance exchange was been hacked in 2019 [1] and in the previous year Binance Smart Chain got hacked [2] so no matter big the exchange, there's always a hacker able to hack it. The best is stay away against centralized exchange and learn how to use Bisq, also hold your coins in cold storage.

[1] https://www.cnbc.com/2019/05/08/binance-bitcoin-hack-over-40-million-of-cryptocurrency-stolen.html
[2] https://www.sangfor.com/blog/cybersecurity/binance-hack-technically-explained-heist-worth-usd570-million

[xSkylarx]

Investing in security is really the number one priority of those exchanges because that is the money we are talking about, and most of the blackhat hackers want it so having good security and no exploit is best. However the truth is that we can't predict it and most of those hackers and those maintaining the security are in race mode to find an exploit that can either be fixed as they found it or exploited. That is why investing in security infrastructure and a good team of cyber security professionals is required.

[imamusma]

As you mentioned, even binance is no exception. But I highly believe, they have very good security system to counter attack possible threats.

Nope, Binance exchange was been hacked in 2019 [1] and in the previous year Binance Smart Chain got hacked [2] so no matter big the exchange, there's always a hacker able to hack it. The best is stay away against centralized exchange and learn how to use Bisq, also hold your coins in cold storage.

[1] https://www.cnbc.com/2019/05/08/binance-bitcoin-hack-over-40-million-of-cryptocurrency-stolen.html
[2] https://www.sangfor.com/blog/cybersecurity/binance-hack-technically-explained-heist-worth-usd570-million

Decentralized exchanges are certainly better in terms of security compared to centralized exchanges, but that doesn't mean everyone should avoid centralized exchanges. As long as they use centralized exchanges as intended (not for long-term asset storage) then they are safe to use. Imo, unsafe doesn't mean it shouldn't be used completely, it means they just have to care enough and avoid keeping money in their online account in the long term.

I believe in centralized exchanges to some extent, but when it comes to investments then I also still need to consider a wallet that gives me full custody. This is important despite me still using centralized exchanges regularly to trade.

[moneystery]

there is no secure platform on the internet, everything has the potential to be hacked and that includes centralized exchanges. even when centralized exchanges spend a lot of money on their security, there are always loopholes that can be exploited by hackers to hack into the system and steal these assets.

what is needed from these exchanges is how they can handle hacking on their platforms, what are their preventive measures or responsibilities after hacking, that is what users need most, because the responsibility of these exchange platforms is primarily in their service to users and also protect their image in the crypto world.

[CryptopreneurBrainboss]

I am aware that KYC may reduce fraudulent activity, however dealing with hacking and security exploitation issues will need investing in the strengthening of security. Adoption could happen quickly with sufficient protection because safety will be assured.

We don't need centralized exchange or other platforms for adoption to happen. Bitcoin is a decentralized cryptocurency and we'll get adoption in a decentralized manner. Kyc might be said to reduced fraudulent activity but we know that's not the main reason behind all centralized exchange been asked to implement them. They're getting implemented so the government can easily monitor our transaction whenever they want by just requesting the exchange to provide them access. People shouldn't be worried about all the hacks that's happening because if they do things rightly, they won't become victme. Those that are becoming victims are those been ignorant to advice as  they keep keeping their coins on exchange and other centralized platforms when it has been said many times to not store coins on exchange.

Even though there are still very few trading platforms that have never experienced security exploitation, the recent incident with Houbi should serve as a reminder for everyone to remain attentive and prioritize their security.

They'll all have their share of the pie (hack) because they're centralized and just a copy of each other codes meaning if one can get exploited others too will get exploited. Don't trust any of them to store your coins on their platforms. If there's a need to use them, then just use them for the service they were created for which is to exchange and don't do any other things on the platforms. Ignore any juicy offering they're promising and keep your coin in a secured, open source, non custodial wallets and make the security of your investment your top priority instead of giving it to someone else who don't give a fuck about what happens to your coins but only giving fake promises to get more customers onto their exchange to make money.

[carlfebz2]

I am aware that KYC may reduce fraudulent activity, however dealing with hacking and security exploitation issues will need investing in the strengthening of security. Adoption could happen quickly with sufficient protection because safety will be assured.

We don't need centralized exchange or other platforms for adoption to happen. Bitcoin is a decentralized cryptocurency and we'll get adoption in a decentralized manner. Kyc might be said to reduced fraudulent activity but we know that's not the main reason behind all centralized exchange been asked to implement them. They're getting implemented so the government can easily monitor our transaction whenever they want by just requesting the exchange to provide them access. People shouldn't be worried about all the hacks that's happening because if they do things rightly, they won't become victme. Those that are becoming victims are those been ignorant to advice as  they keep keeping their coins on exchange and other centralized platforms when it has been said many times to not store coins on exchange.

Even though there are still very few trading platforms that have never experienced security exploitation, the recent incident with Houbi should serve as a reminder for everyone to remain attentive and prioritize their security.

They'll all have their share of the pie (hack) because they're centralized and just a copy of each other codes meaning if one can get exploited others too will get exploited. Don't trust any of them to store your coins on their platforms. If there's a need to use them, then just use them for the service they were created for which is to exchange and don't do any other things on the platforms. Ignore any juicy offering they're promising and keep your coin in a secured, open source, non custodial wallets and make the security of your investment your top priority instead of giving it to someone else who don't give a fuck about what happens to your coins but only giving fake promises to get more customers onto their exchange to make money.

So we do say that decentralized platforms would be the key on stopping this? I dont think so and just trying to look at on the other hand on what are the things lacking with these DEX'es which we do know that it

isnt something that could really be in line with fiat transactions or into those functions and benefits on what centralized platforms could give or deal with and this is why CEX would really be always that recommendable or really that being preferred due to this kind of reason. If you do really mind about being anonymous and decentralized then you could really be able to deal or make use with those current existing
decentralized platforms but of course it would really be having that kind of limited function and this is something that will really be that some people might not be that looking that it do really lacks with those
things that cex could be able to provide.

The most important thing that we should really bare in our mind is that we should not really make these platforms to act as our main wallets. On the time that hacking incident happens
then you wont really be losing all of your precious coins. We know that there's no such thing about 100% safe with our coins specially on platform wallets which we dont
able to have those PK access and with that alone then its impossible that you cant be able to assess on whats the right thing to be done.

[DaMut]

the sad thing is that there is a little to what these exchanges can do about this hacking in particular because the more you get secured the  more the hackers also get equipped and also i think most times it might be as a result of insider having an hand in the hacking maybe not everytime. hopefully we can get to the stage where the hacking will be a thing of the past in this space.

[dezoel]

I agree that crypto exchanges must invest in better security, but there are also a couple of other things to note here. First, people must learn to only store what they're totally fine with losing on exchanges because a centralized platform is a risk not just due to possible hacks but also exit scams, mismanagement of customers' funds, etc. Second, crypto exchanges sometimes claim there was a hack, when in all likeliness it was an inside job that led to funds being stolen from customers.
I also stand with those who aren't sure KYC is that useful, especially in the context of security.

They did try their best actually when it comes to this matter because they are holding a lot of funds. It's just that robbers were sometimes too skillful to still access them. Sometimes an inside job can happen too. This is why it's important for the customer to follow the tips that you have said there.

About the KYC, I think it's only useful to combat money laundering. It was still an added risk on the customer's side because hackers can steal them. This is why many are against with it. Luckily there are still a couple of crypto exchanges who can allow their customers to use their platform without needing to undergo in a KYC verification process.

[abel1337]

I agree that crypto exchanges must invest in better security, but there are also a couple of other things to note here. First, people must learn to only store what they're totally fine with losing on exchanges because a centralized platform is a risk not just due to possible hacks but also exit scams, mismanagement of customers' funds, etc. Second, crypto exchanges sometimes claim there was a hack, when in all likeliness it was an inside job that led to funds being stolen from customers.
I also stand with those who aren't sure KYC is that useful, especially in the context of security.

They did try their best actually when it comes to this matter because they are holding a lot of funds. It's just that robbers were sometimes too skillful to still access them. Sometimes an inside job can happen too. This is why it's important for the customer to follow the tips that you have said there.

About the KYC, I think it's only useful to combat money laundering. It was still an added risk on the customer's side because hackers can steal them. This is why many are against with it. Luckily there are still a couple of crypto exchanges who can allow their customers to use their platform without needing to undergo in a KYC verification process.

Exchanges has a lot of money and that is the obvious reason why hacker targets exchanges and other crypto projects. I believe that if you are a platform that holds large amount of things that has a value like crypto exchange, the first in the priority is security. A hacking incident on an exchange can put them into a burning pit not only that they can possibly have a financial burden but also the trust that their customer had put in them. No system is safe, there's always a way that hacker can intrude their system this is why exchanges need to prioritize updating their security.

[Renampun]

As good as the security they can improve or enhance, it's not make they 100% will never get hacked because online website are prone to get hacked.

Huobi isn't the only one exchange get hacked, centralized exchange already get hacked since 2011 [1] and every year there's always an exchange get hacked. So it means, all centralized exchange only waiting their turn to get hacked.

[1] https://bitcointalk.org/index.php?topic=5090869.0

I agree with you, online exchange sites will never be safe from hacking attacks because those who operate them are still humans, there have even been several cases where those who hacked the site were former employees. Therefore, it is highly recommended not to store large amounts of assets on crypto exchanges, they are very vulnerable, make the exchange only a place for you to trade but use a personal wallet to store your bitcoin assets.

[armanda90]

I agree with you, online exchange sites will never be safe from hacking attacks because those who operate them are still humans, there have even been several cases where those who hacked the site were former employees. Therefore, it is highly recommended not to store large amounts of assets on crypto exchanges, they are very vulnerable, make the exchange only a place for you to trade but use a personal wallet to store your bitcoin assets.

Several centralized exchange ever hacked but trust and reputable with the owner there are not problem yet just take moment for close all withdrawing operation only before back to normal without several days. Huobi is not first exchange got hack looking on history with several top exchange before get the same cases but they can controlling well although loss fund keep operation and success recovery back to make all member fund keep secure.
Its important when holding an assets not in exchange or centralized exchange account, after trading and taking profit move your fund to personal wallet and hold there with your onw sell controlling private key, its not your coin saving in exchange account because they have full controlling when exchange got collapse like FTX not ability for withdrawing back our funds.

[Best-mary]

I know people who are still dubious about the cryptocurrency sector because they worry about losing their money to scams or security breaches, which has been a typical occurrence in this market.
Since the majority of users appear to have welcomed the requirement for required KYC, I believe the focus should now be on enhancing exchange security.

I am aware that KYC may reduce fraudulent activity, however dealing with hacking and security exploitation issues will need investing in the strengthening of security. Adoption could happen quickly with sufficient protection because safety will be assured.

The latest Houbi attack, which resulted in the theft of roughly $8 million worth of Ethereum, and a few other security exploitations of a similar nature on other trading platforms in the past don't bode well for the sector, which calls for the prioritizing of security. https://cointelegraph.com/news/huobi-global-crypto-exchange-hacked-report

Even though there are still very few trading platforms that have never experienced security exploitation, the recent incident with Houbi should serve as a reminder for everyone to remainattentive and prioritize their security.

Any exchange that doesn't take security seriously, I don't know what they're in for anymore. At least all exchanges should have a protection fund and reserve ratio of about 201%